Tokenomics in the Metaverse: understanding the lead–lag effect among emerging crypto tokens
Abstract The convergence of blockchain and immersive technologies has resulted in the popularity of Metaverse platforms and their cryptocurrencies, known as Metaverse tokens. There has been little research into tokenomics in these emerging tokens. Building upon the information dissemination theory,...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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SpringerOpen
2024-04-01
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| Series: | Financial Innovation |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s40854-023-00594-z |
| _version_ | 1827276979340050432 |
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| author | Chong Guan Wenting Liu Yinghui Yu Ding Ding |
| author_facet | Chong Guan Wenting Liu Yinghui Yu Ding Ding |
| author_sort | Chong Guan |
| collection | DOAJ |
| description | Abstract The convergence of blockchain and immersive technologies has resulted in the popularity of Metaverse platforms and their cryptocurrencies, known as Metaverse tokens. There has been little research into tokenomics in these emerging tokens. Building upon the information dissemination theory, this research examines the role of trading volume in the returns of these tokens. An empirical study was conducted using the trading volumes and returns of 197 Metaverse tokens over 12 months to derive the latent grouping structure with spectral clustering and to determine the relationships between daily returns of different token clusters through augmented vector autoregression. The results show that trading volume is a strong predictor of lead–lag patterns, which supports the speed of adjustment hypothesis. This is the first large-scale study that documented the lead–lag effect among Metaverse tokens. Unlike previous studies that focus on market capitalization, our findings suggest that trade volume contains vital information concerning cross-correlation patterns. |
| first_indexed | 2024-04-24T07:13:12Z |
| format | Article |
| id | doaj.art-9ad3770125a44a1ea159fdceae54e9b5 |
| institution | Directory Open Access Journal |
| issn | 2199-4730 |
| language | English |
| last_indexed | 2024-04-24T07:13:12Z |
| publishDate | 2024-04-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj.art-9ad3770125a44a1ea159fdceae54e9b52024-04-21T11:27:42ZengSpringerOpenFinancial Innovation2199-47302024-04-0110111910.1186/s40854-023-00594-zTokenomics in the Metaverse: understanding the lead–lag effect among emerging crypto tokensChong Guan0Wenting Liu1Yinghui Yu2Ding Ding3Centre for Continuing and Professional Education, Singapore University of Social SciencesSingapore University of Social SciencesSingapore University of Social SciencesSingapore University of Social SciencesAbstract The convergence of blockchain and immersive technologies has resulted in the popularity of Metaverse platforms and their cryptocurrencies, known as Metaverse tokens. There has been little research into tokenomics in these emerging tokens. Building upon the information dissemination theory, this research examines the role of trading volume in the returns of these tokens. An empirical study was conducted using the trading volumes and returns of 197 Metaverse tokens over 12 months to derive the latent grouping structure with spectral clustering and to determine the relationships between daily returns of different token clusters through augmented vector autoregression. The results show that trading volume is a strong predictor of lead–lag patterns, which supports the speed of adjustment hypothesis. This is the first large-scale study that documented the lead–lag effect among Metaverse tokens. Unlike previous studies that focus on market capitalization, our findings suggest that trade volume contains vital information concerning cross-correlation patterns.https://doi.org/10.1186/s40854-023-00594-zTokenomicsLead–lagMetaverse tokensTrade volumeDaily returns |
| spellingShingle | Chong Guan Wenting Liu Yinghui Yu Ding Ding Tokenomics in the Metaverse: understanding the lead–lag effect among emerging crypto tokens Financial Innovation Tokenomics Lead–lag Metaverse tokens Trade volume Daily returns |
| title | Tokenomics in the Metaverse: understanding the lead–lag effect among emerging crypto tokens |
| title_full | Tokenomics in the Metaverse: understanding the lead–lag effect among emerging crypto tokens |
| title_fullStr | Tokenomics in the Metaverse: understanding the lead–lag effect among emerging crypto tokens |
| title_full_unstemmed | Tokenomics in the Metaverse: understanding the lead–lag effect among emerging crypto tokens |
| title_short | Tokenomics in the Metaverse: understanding the lead–lag effect among emerging crypto tokens |
| title_sort | tokenomics in the metaverse understanding the lead lag effect among emerging crypto tokens |
| topic | Tokenomics Lead–lag Metaverse tokens Trade volume Daily returns |
| url | https://doi.org/10.1186/s40854-023-00594-z |
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